Match the following statements.
-Sale of an ownership interest by a partner.
A)Transaction in this form enables double taxation to be avoided.
B)Gain or loss is calculated separately for each asset and is subject to single taxation.
C)This is subject to double taxation.
D)The sale is treated as the sale of a capital asset under § 741 but subject to ordinary income potential under §
751.
E)This is not subject to double taxation on the sale of corporate stock.

Question

Quizplus · Accepted Answer

The sale of an ownership interest by a partner is treated as the sale of a capital asset under § 741, but it may be subject to ordinary income potential under § 751 if there are "hot assets" involved.

Match the Following Statements